< saint leo univ eco 202 chapter 20 test (2015)>

Question Score:  0 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

The water-diamond paradox was solved by realizing the price people are willing to pay for a unit of a particular commodity is determined by.

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Total utility

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Fill in the missing cells in the table.

Question Score:  1 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

Other things remaining equal, as the relative price of a good falls, people consume more of that good because

Question Score:  1 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

In consumer theory, utility is

Question Score:  1 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

Which of the following examples are used as evidence favouring the bounded rationality assumption?

Question Score:  0 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

Suppose the price of apples falls relative to other similar goods, and as a result the quantity of apples demanded increases;  This is caused by

Question Score:  1 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

Refer to the table above. Suppose the price of a movie is $5 and the consumer’s, Suppose the price of a movie is $5 and the consumers’ income is $29. What are the quantities demanded of hamburgers at prices of $2 and $1 respectively?

Question Score:  0.67 of 1 pt                                                                       Test Score:  63.89% (7.67 of 12 pts)

Given the following table, fill in the blank below.

If your income was $40 and the price of pizzas was $5 and the price of videos was $4, what combination of pizzas and video would maximize your utility?

Question Score:  1 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

The use of utility-based consumer choice theory

Question Score:  1 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

If total utility is increasing at a decreasing rate, marginal utility is

Question Score:  0 of 1 pt                                                                             Test Score:  63.89% (7.67 of 12 pts)

The law of diminishing marginal utility insures that